Privacy concerns over credit card use for legal online pot purchases

Concern has been heightened in provinces where anonymously paying cash in-store is not possible in light of a controversial Statistics Canada initiative to obtain detailed bank records from all Canadians

Topics

Industries

TORONTO—Canada’s privacy commissioner is planning to issue guidance for buyers and sellers of legal cannabis amid ongoing concern about potential fallout, such as being barred from the United States, if transactions become known by third parties.

The concern has been heightened in provinces where anonymously paying cash in-store is not possible in light of a controversial Statistics Canada initiative to obtain detailed bank records from all Canadians.

“Our office recognizes the sensitive nature of cannabis-related transactions—particularly if information about those transactions is processed in a jurisdiction where cannabis consumption is not legal,” said Tobi Cohen, a spokeswoman for the federal privacy commissioner. “Organizations need to make it plain to individuals that their information may be processed in a foreign country, and that it may be accessible to law enforcement and national security authorities of that jurisdiction.”

British Columbia has already issued its own guidance and privacy-protection tips. For example, it notes that online sellers collect personal information such as name, date of birth, home address, credit card number, purchase history and email address.

Legal online purchases across Canada show up on bank statements in a variety of ways, depending on the retailer.

In Manitoba, for example, an order from the outlet Delta 9 shows up as “D9-2 -8675309 Winnipeg MB,” while purchases in British Columbia appear as “BCS Online Vancouver.” Those in Nova Scotia are recorded as coming from the provincial liquor corporation—“NSLC #2098/e-commerce Halifax.” Similarly, in Newfoundland and Labrador, orders register as NLC #700 St. John’s N.L.

In Ontario, where the only way to buy marijuana legally is online through the Ontario Cannabis Store using a credit card, transactions show up as “OCS/SOC.”

Jesse, 39, of Toronto, who’s in marketing and who asked his last name not be used, said he has mixed feelings about “OCS/SOC” appearing on his credit-card statement.

“I’m not crazy about being potentially profiled at the U.S. border because of a purchase that’s thrown up in my credit history,” Jesse said. “At the same time, I’m not losing sleep over it because there’s no precedent (for that) yet.”

In the pre-legal era, online outlets usually masked credit-card purchases, perhaps by using a generic notation such as “Organics,” and some still do so now. However, a spokeswoman for the Ontario Cannabis Store said such an approach doesn’t fly.

“As a legal business operating in Ontario, it is required that we operate with transparency,” Amanda Winton said. “This includes using our registered business name for payment services.”

Ontario’s privacy commissioner, Brian Beamish, said his office recommends redacting sensitive information in a case where, for example, a landlord might ask a prospective tenant for a credit card statement. Beamish also said a generic name used to record cannabis transactions could become widely known.

Canadianmanufacturing.com is the top source of daily industry-focused news in Canada. We cover the world for stories that impact your business each day with news, in-depth articles and expert commentary.

Cleantech Canada delivers the latest news and insight on the global green economy. Our award-winning editors and expert contributors connect businesses and entrepreneurs with information on cleantech financing, market development and growth strategies.

Find it on Frasers, your home for sourcing industrial suppliers of manufactured products, MRO equipment and components, and so much more.